Jet Airways' lenders to take airline to bankruptcy court

MUMBAI: Lenders to Jet Airways plan to begin insolvency proceedings against the debt-laden carrier, a consortium of the airline’s lenders said in a statement on Monday.

“After due deliberations, lenders have decided to seek resolution under IBC since only a conditional bid was received,” said the lenders, referring to India’s Insolvency and Bankruptcy Code.

Once India’s biggest private carrier, Jet Airways was forced to stop flying in April after running out of cash. Its collapse has left thousands without jobs and pushed up air fares across the country.

At its peak, 26-year-old Jet operated over 120 planes and well over 600 daily flights, flying Bollywood film-stars, politicians and business tycoons across India and the world.

Hundreds of angry employees had protested in New Delhi and Mumbai in April, accusing management of leaving staff in the dark about the airline’s worsening crisis.

“Management never gives us a clear picture,” airline union leader Chaitanya Mainkar had said during a protest at Mumbai’s international airport where employees chanted slogans and waved posters that read “Save Jet Airways, Save Our Family.”